Alliance Grain Traders Inc. Announces CDN$300 Million Senior Secured Credit Facilities
SYMBOL: TSX: AGT
REGINA,SK, Jan. 24, 2013 /CNW/ - Alliance Grain Traders Inc. ("AGT") announced today that its wholly-owned subsidiary, Alliance Pulse Processors Inc. ("APP"), has entered into an aggregate amount of CDN$300 million credit facilities with The Bank of Nova Scotia and a syndicate of six other lenders: HSBC Bank Canada, Canadian Imperial Bank of Commerce, Farm Credit Canada, Alberta Treasury Branches, Export Development Canada and ICICI Bank Canada. The credit facilities includes an aggregate amount of CDN$270 million senior secured credit facilities and a CDN$30 million accordion that increases the size of the facilities to CDN$300 million.
"We are pleased to announce these new credit facilities, which we feel continues to show the strength of our business and balance sheet. The initiatives we have undertaken to strengthen our business in this difficult credit environment and the success we have been able to demonstrate based on their implementation have allowed us to continue to work with existing lenders and expand that group to include new partners to arrange this new financing," said Mr. Murad Al-Katib, President and CEO of AGT. "We will continue to use our credit facilities as appropriate to drive our asset and global growth plans and build on the confidence our lenders have shown in our business, our management team and our strategy. AGT is focused on the implementation of our strategy to utilize our existing asset base to develop sales in our staple foods and ingredients business. We have capital, markets and capacity. That gives us the capability to drive earnings and value for our shareholders."
"As a company, we have been focused on strengthening our credit availability from our lenders around the globe, using our strong balance sheet to satisfy our borrowing requirements. These new credit facilities continue to refine and solidify our working capital and financing requirements in Canada, the U.S. and Australia. Our Management will continue to focus on efficient management of our working capital. Inventory turns, receivable collection and reduction of AGT's overall cash cycle are the subjects of many management initiatives. Availability of longer-term working capital and financing is an essential element of our plan to boost utilization of our global footprint, leading to earnings improvements. We are pleased with our partners on these facilities and welcome our new lending partners," added Mr. Huseyin Arslan, Executive Chairman of AGT.
The credit facilities will be used for general corporate purposes as well as to consolidate APP's existing bank credit facilities and contains financing tranches that may be utilized for future permitted acquisitions and capital expenditures as set forth in the credit facilities. The new facilities have maturity dates of January 24, 2016 which may be extended at the request of APP for one-year periods with the consent of the syndicate and are subject to certain other terms and conditions.
The terms of the credit facilities include customary conditions, events of default, covenants and representations and warranties. The credit facilities are guaranteed by AGT and a select number of its direct and indirect wholly-owned subsidiaries. Scotia Capital served as Lead Arranger and Bookrunner, with The Bank of Nova Scotia acting as Administration Agent.
Alliance Grain Traders Inc. Profile
Alliance Grain Traders Inc. (AGT) is a value-added pulse, staple food and ingredient processor for export and domestic markets. Through its offices and processing facilities located in some of the best agricultural growing regions in Canada, the U.S., Turkey, China, Australia and South Africa, merchandising and sales offices in the U.K., the Netherlands and Spain and origination offices in Russia, AGT produces a full range of pulses and specialty crops including lentils, peas, chickpeas, beans and canary seed as well as food ingredients such as pulse flours, proteins, starches and fibres. Through its subsidiaries in Turkey, the Arbel Group, AGT also produces staple foods such as Arbella Pasta, rice, and milled wheat products, including bulgur and semolina.
Certain statements in this press release are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by AGT at the time of preparation, may prove to be incorrect. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of AGT (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, the actual results of harvests, fluctuations in the price of lentils and other crops, failure of plant, equipment or processes to operate as anticipated, accidents or labour disputes, risks relating to the integration of acquisitions or to international operations, as well as those factors referred to in the section entitled "Risk Factors" in the Annual Information Form of AGT dated March 27, 2012 which is available on SEDAR at www.sedar.com, and which should be reviewed in conjunction with this document. Although AGT has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. AGT expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE Alliance Grain Traders Inc.